Core Viewpoint - Tapestry aims to fully mitigate the impact of U.S. tariffs by fiscal year 2028 while planning a $3 billion share buyback during this period [1][2] Group 1: Tariff Impact - The company anticipates tariffs will cost approximately $160 million in fiscal 2026, particularly affecting the Kate Spade brand [2] - Tapestry's CFO stated that gross and operating margins are expected to grow in fiscal 2027 and beyond despite tariff impacts [2] Group 2: Brand Performance - Coach, Tapestry's largest revenue driver, is projected to boost sales to around $10 billion in the long term [3] - Kate Spade is expected to return to profitable topline growth by fiscal 2027 [3] Group 3: Financial Forecast - Tapestry forecasts full-year revenue growth in the mid-single digits for fiscal 2027 and 2028, with adjusted profit per share expected to grow by low double-digits each year [4] - The stock has increased by 60% so far this year, although it experienced a decline of up to 3.4% in afternoon trading [4]

Core Insights - lululemon athletica inc. (LULU) is recalibrating its growth story as it faces challenges in the U.S. market, with second-quarter fiscal 2025 EPS of $3.10 exceeding estimates, while revenues of $2.53 billion fell slightly short [1] - The company has lowered its revenue and EPS guidance for fiscal 2025 due to increased tariff-related costs and soft trends in the U.S. market, projecting revenues of $10.85-$11 billion and EPS of $12.77-$12.97, indicating a decline from fiscal 2024 [2] - The product mix is a core challenge, with management acknowledging that some product categories have become stale, leading to weaker customer engagement [3] Financial Performance - In the second quarter of fiscal 2025, lululemon's revenues improved year over year, but the bottom line declined due to soft margins [1] - The company expects a gross margin reduction of 300 basis points in fiscal 2025, translating to a $240 million impact, primarily due to tariff pressures [5] - The Zacks Consensus Estimate for fiscal 2025 earnings implies a year-over-year decline of 8.4%, while fiscal 2026 suggests a growth of 3.2% [14] Product Strategy - lululemon aims to boost new style penetration from 23% to 35% by spring 2026 and is fast-tracking innovation to address product cycle missteps [3] - New product launches like Daydrift and BeCalm are intended to reignite customer excitement, although the benefits may not fully materialize until fiscal 2026 [4] International Growth - International markets remain a bright spot, with revenues in China rising 25% and the Rest of the World increasing by 19%, supported by store expansion [5] - Despite U.S. weaknesses, international growth is expected to help offset some of the challenges faced domestically [5] Competitive Landscape - lululemon faces increasing competition from traditional fashion players like Ralph Lauren and Guess, who are also adjusting their strategies in the athleisure space [6] - Ralph Lauren reported a strong first-quarter fiscal 2026 with revenues rising 14% year over year, while Guess experienced a decline in revenues but is focusing on cost controls and digital expansion [7][8] Stock Performance - lululemon's shares have declined by 56.7% year to date, compared to the industry's decline of 27.9% [11] - The company trades at a forward price-to-earnings ratio of 10.89X, which is lower than the industry average of 11.43X [12]

Core Viewpoint - Kering will not fully acquire Italian fashion house Valentino until at least 2028, marking a significant decision under the leadership of new CEO Luca de Meo [1] Company Summary - Kering's decision to delay the full acquisition of Valentino indicates a strategic approach to its investment and growth plans in the luxury fashion sector [1] Industry Summary - The luxury fashion industry is witnessing shifts in acquisition strategies, with companies like Kering reassessing their timelines for major investments [1]

Core Viewpoint - Tapestry, the owner of Coach and Kate Spade, has seen its shares rise nearly 60% this year, despite facing some pressure during its investor day where it announced a new growth strategy called "Amplify" [1][2]. Financial Performance - The company is targeting annual revenue growth in the mid-single digits through fiscal 2028, following a record revenue of $7 billion last year [2]. Growth Strategy - The "Amplify" agenda aims to build Coach to $10 billion over time, with a focus on long-term growth rather than short-term gains [3]. - Tapestry believes that Kate Spade has significant potential and aims to reignite growth through the "Amplify" brand strategy [4]. Consumer Engagement - Tapestry recognizes that while Kate Spade has high consumer awareness, it needs to improve relevance to drive purchases, bridging the gap between brand recognition and consumer buying behavior [5]. - The company is focusing on understanding consumer needs deeply, as demonstrated by the launch of the Duo bag, which was designed based on insights from Gen Z consumers seeking versatility [6][7]. Market Positioning - Tapestry positions itself as a more accessible luxury brand compared to competitors like LVMH and Gucci, emphasizing that consumers do not need to save extensively to purchase a Coach handbag [9]. - The company targets young consumers entering the market, particularly those turning 18, as a key demographic for future growth [11][12].

Core Insights - The article discusses the busy schedule of corporate events, including Analyst Days and Shareholder Meetings, which can provide valuable insights into companies' short-term trends and strategic plans [1][2][3] Company Events - Uber Technologies participated in a Fireside Chat with Goldman Sachs analysts, while Visa, Apple, and Nike are hosting significant events this week [2] - CrowdStrike's Analyst Day is scheduled for September 17, following a stock price decline of over 20% from its peak of $518 in early July, despite strong revenue and earnings performance [6][9] - Wynn Resorts will hold its Analyst Day on September 19, with shares nearly doubling since April, although recent reports indicate challenges in the Las Vegas tourism sector [7][9] - Alibaba's Shareholder Meeting is set for September 25, with the company recently announcing the development of new AI chips, positioning itself competitively in the tech sector [10] - FedEx's Shareholder Meeting is on September 29, with expectations for clarity on its Freight division spinoff amid a 20% stock price decline over the past year [11] Economic Context - The article highlights the upcoming macroeconomic data releases, including retail sales and Federal Reserve policy decisions, which could impact market sentiment and company performance [4][5][12] - The Cboe Volatility Index (VIX) is currently around 15, indicating modest expected volatility in the S&P 500, suggesting a stable market environment for the time being [12]

Core Viewpoint - Nike's turnaround efforts are gaining traction, leading to an upgraded outlook from Hold to Buy by TD Cowen analyst John Kernan [2] Group 1: Company Performance - Improved marketplace and inventory management are contributing to Nike's positive performance [2] - The brand's dominance in key sports categories, particularly running and basketball, is a significant factor in its success [2]

Group 1 - Lululemon Athletica is currently facing negative momentum and has experienced a significant compression in its valuation [1] - The company is identified as an apparel company with potential growth opportunities despite its current challenges [1] Group 2 - The analysis emphasizes a fundamental approach to identifying undervalued stocks, which aligns with the characteristics of Lululemon Athletica [1]

Recently, there has been a lot of talk about Lululemon Athletica (NASDAQ: LULU ). It is an apparel company that is experiencing bad momentum and has had its valuation greatly compressed. That rings a bell forEquity Research Analyst with a broad career in the financial market, covered both Brazilian and global stocks. As a value investor, my analysis is primarily fundamental, focusing on identifying undervalued stocks with growth potential. Feel free to reach out for collaborations or to connect!Analyst’s Di ...

Group 1 - NVIDIA shares are among the best performers in the Dow Jones Industrial Average, trading up 4.3% on the day and showing a year-to-date gain of 32.6% [1] - Amazon.com is the worst performing Dow component for the day, trading down 2.0%, but has a year-to-date gain of 6.4% [1] - Other notable movements include Apple trading down 1.9% and Nike trading up 1.1% on the day [1]

Upgrades - BofA upgraded Rocket Companies (RKT) to Buy from Neutral with a price target of $24, up from $21, citing updated Federal Reserve rate cut forecast [2] - Morgan Stanley upgraded nCino (NCNO) to Overweight from Equal Weight with a price target of $36, up from $35, believing the cut in estimates provides an opportunity [2] - Susquehanna upgraded Saia (SAIA) to Positive from Neutral with a price target of $360, up from $340, expecting Q2 earnings to "snap-back" after a challenged fiscal Q1 report [3] - TD Cowen upgraded Nike (NKE) to Buy from Hold with a price target of $85, up from $62, citing improved margins, new management execution, and positive trends [3] - Citi upgraded Oracle (ORCL) to Buy from Neutral with a price target of $410, up from $240, after a "historic Q1 bookings quarter" with over $330 billion in bookings [4] - BofA also upgraded Oracle to Buy from Neutral with a price target of $368, up from $295, following exceptional RPO and backlog growth in Q1 [4] Downgrades - BofA double downgraded Synopsys (SNPS) to Underperform from Buy with a price target of $525, down from $625, due to uncertainty with top customer Intel and higher integration costs [5] - Morgan Stanley downgraded Trade Desk (TTD) to Equal Weight from Overweight with a price target of $50, down from $80, acknowledging a misjudgment on growth durability [5] - BofA downgraded BorgWarner (BWA) to Neutral from Buy with a price target of $46, up from $41, as shares approach historical valuation median range [5] - BofA downgraded Lear (LEA) to Neutral from Buy with a price target of $123, down from $135, citing challenges in the automotive industry affecting growth [5] - Evercore ISI downgraded HP Inc. (HPQ) to In Line from Outperform with an unchanged price target of $29, needing clearer paths to EPS and free cash flow estimates for further upside [5]